Byju’s insolvency case: NCLT defers US lender’s plea to stop committee of creditors proceedings 

The Bengaluru bench of the National Company Law Tribunal (NCLT) has deferred the matter between Glas Trust Co, which represents a group of the troubled edtech firm Byju’s US lenders, and the Insolvency Resolution Professional (IRP) for the parent company, Think & Learn Pvt Ltd. According to the bench, it cannot stop the committee of creditors (CoC) proceedings as the Supreme Court allowed its constitution on August 21.

According to a report in The Economic Times, the NCLT stated that the apex court has given the go-ahead for the formation and constitution of the Committee of Creditors (CoC) and for conducting the meeting, making it clear that the process cannot be halted. The bench mentioned that lenders could file a separate application if they wish to pursue further actions.

The issue at hand involves the removal of Glas Trust from the CoC by IRP Pankaj Srivastava. Glas Trust has challenged its removal and is also seeking the removal of Srivastava as the IRP.

“We will defer it by one week, to September 11. By that time, if it comes up before the Supreme Court, then very well and good; otherwise, we will proceed,” the bench said on Wednesday.

Solicitor General Tushar Mehta, representing the BCCI, informed the bench that while the cricket body opposed the constitution of the CoC, it was Glas Trust that insisted on its formation.

On Tuesday, the committee held its first meeting where the IRP for Byju’s removed Glas Trust from the committee after concluding that it does not represent the minimum 51 per cent of lenders in the consortium that provided a $1.2 billion term loan to Byju’s, sources aware of the matter said. 

Srivastava secured his role as the permanent resolution professional (RP), sources said.

According to the lenders, Srivastava moved the first CoC meeting 9 hours earlier without informing Glas Trust or its advisors.

The Supreme Court is also hearing an appeal by Glas Trust, opposing a Rs 158-crore settlement arrived at between the edtech firm and the BCCI, alleging that the money paid by Byju Raveendran’s brother Riju Ravindran was tainted.